PMBOK - Chapter 2 - 2.4 PLANNING PERFORMANCE DOMAIN (2/2)

2.4.2.3 Schedules 

A schedule is a model for executing the project’s activities, including durations, dependencies, and other planning information. Schedule planning can use predictive or adaptive approaches. Predictive approaches follow a stepwise process as follows: 

▶ Step 1. Decompose the project scope into specific activities. 

▶ Step 2. Sequence related activities. 

▶ Step 3. Estimate the effort, duration, people, and physical resources required to complete the activities. 

▶ Step 4. Allocate people and resources to the activities based on availability. 

▶ Step 5. Adjust the sequence, estimates, and resources until an agreed-upon schedule is achieved.

If the schedule model does not meet the initial desired end date, schedule compression methods are applied. Crashing is a schedule compression method that seeks to shorten the duration for the least incremental cost. Crashing can include adding people to activities, working overtime, or paying to expedite deliveries. 

Fast tracking is a schedule compression method in which activities or tasks that are normally done in sequence are performed in parallel, at least for a portion of their duration. Fast tracking often entails applying leads and lags along a network path. A lead is where the work of a successor activity is accelerated, such as starting a successor activity before the predecessor has finished. In Figure 2-16, there is a lead between the finish of Task 2 and the start of Task 4. 

A lag is a delay of a successor activity. An example of using a lag would be changing the type of relationship between activities, and then applying a lag. For example, rather than waiting for an activity to finish before the next one starts (a finish-to-start relationship), change the relationship to have the end of the successor activity finish a determined amount of time after the end of the predecessor (a finish-to-finish relationship). The network logic would show a lag between the finish of the predecessor and the finish of the successor activities. There is an example of a finish-to-finish relationship with a lag in Figure 2-16 between Task 8 and Task 7. A lag can also be applied between the start of one activity and the start of another activity (a start-to-start relationship).

When compressing the schedule, it is important to determine the nature of the dependencies between activities. Some activities cannot be fast tracked due to the nature of the work—others can. The four types of dependencies are: 

▶ Mandatory dependency. A relationship that is contractually required or inherent in the nature of the work. This type of dependency usually cannot be modified. 

▶ Discretionary dependency. A relationship that is based on best practices or project preferences. This type of dependency may be modifiable. 

▶ External dependency. A relationship between project activities and non-project activities. This type of dependency usually cannot be modified. 

▶ Internal dependency. A relationship between one or more project activities. This type of dependency may be modifiable.

Adaptive schedule planning uses incremental planning. One such scheduling approach is based on iterations and releases (see Figure 2-17). A high-level release plan is developed that indicates the basic features and functionality to be included in each release. Within each release, there will be two or more iterations. Each iteration adds business and/or stakeholder value. Value may include features, risk reduction, experimentation, or other ways of delivering or protecting value. The planning for the work in future releases is kept at a high level so the project team does not engage in planning that could change based on feedback from earlier releases.

Adaptive approaches often use timeboxes. The work in each timebox is based on a prioritized backlog. The project team determines the amount of work they can do in each timebox, estimates the work, and self-manages to accomplish the work. At the end of the timebox, the project team demonstrates the work completed. At that point, the backlog and estimates of work available to be done may be updated or reprioritized for the next timebox. 

Determining the schedule involves using the information in the estimating section to determine overall duration and effort estimates. Regardless of the scheduling approach used, the relationship between effort and duration needs to be addressed. Some activities are effort driven, which means that the duration can be reduced by adding people. This approach can work up to a point, after which adding people might actually extend duration. Framing a building is effort driven. If more people are added, the duration can be reduced. Some activities are fixed duration, such as running a test or conducting employee training. 

The nature of the work determines if and how much the duration can be reduced by adding people before increasing the time due to coordination, communication, conflict, and potential rework. There is no fixed formula to determine the reduction in duration due to the addition of people. 

2.4.2.4 Budget 

The project budget evolves from the agreed estimates for the project. The information in Section 2.4.2.2 on Estimating is applied to project costs to develop cost estimates. Cost estimates are then aggregated to develop the cost baseline. The cost baseline is often allocated across the project schedule to reflect when the costs will be incurred. This practice allows project managers to balance the funds approved in a specific budget period with the scheduled work. If there are funding limitations for a budget period, the work may need to be rescheduled to meet those limitations. 

The project budget should include contingency reserve funds to allow for uncertainty. Contingency reserves are set aside to implement a risk response or to respond to risk events should they occur. 

Management reserves are set aside for unexpected activities related to in-scope work. Depending on the organization’s policies and organizational structure, management reserves may be managed by the project, the sponsor, product owner, or the PMO at the program and portfolio level. Figure 2-18 shows the budget build up.

2.4.3 PROJECT TEAM COMPOSITION AND STRUCTURE 

Planning for project team2 composition begins with identifying the skill sets required to accomplish the project work. This entails evaluating not only the skills, but also the level of proficiency and years of experience in similar projects. 

There are different cost structures associated with using internal project team members versus securing them from outside the organization. The benefit that outside skills bring to the project are weighed against the costs that will be incurred.

When planning for the project team, the project manager considers the ability and necessity for the project team to work in the same location. Small project teams that can work in the same room are able to take advantage of osmotic communication and can solve problems as they arise. Some project teams are physically dispersed. Project team members may be in different cities, time zones, or countries. On projects where project team members work virtually, more time is spent connecting people through technology. 

2.4.4 COMMUNICATION 

Communication planning overlaps with stakeholder identification, analysis, prioritization, and engagement as described in the Stakeholder Performance Domain (Section 2.1). Communication is the most important factor in engaging with stakeholders effectively. Planning communication for the project entails considering the following: 

▶ Who needs information? 

▶ What information does each stakeholder need? 

▶ Why should information be shared with stakeholders? 

▶ What is the best way to provide information? 

▶ When and how often is information needed? 

▶ Who has the information needed? 

There may be different categories of information, such as internal and external, sensitive and public, or general and detailed. Analyzing the stakeholders, information needs, and categories of information provides the foundation for establishing the communications processes and plans for the project.

2.4.5 PHYSICAL RESOURCES 

Physical resources apply to any resource that is not a person. It can include materials, equipment, software, testing environments, licenses, and so forth. Planning for physical resources entails estimating, as described in Section 2.4.2.2, as well as supply chain, logistics, and management. Projects with significant physical resources, such as engineering and construction projects, will need to plan for procurement activities to acquire the resources. This may be as simple as utilizing a basic ordering agreement or as complicated as managing, coordinating, and integrating several large procurement activities. 

Planning for physical resources includes taking into account lead time for delivery, movement, storage, and disposition of materials, as well as a means to track material inventory from arrival on site to delivery of an integrated product. Project teams whose projects require significant physical materials think and plan strategically about the timing from order, to delivery, to usage. This can include evaluation of bulk ordering versus cost of storage, global logistics, sustainability, and integrating management of physical assets with the rest of the project. 

2.4.6 PROCUREMENT 

Procurements can happen at any time during a project. However, up-front planning helps to set expectations that ensure the procurement process is performed smoothly. Once the highlevel scope is known, project teams conduct a make-or-buy analysis. This includes identifying those deliverables and services that will be developed in-house, and those that will be purchased from external sources. This information impacts the project team and the schedule. Contracting professionals need advance information on the type of goods needed, when they will be needed, and any technical specifications required for the procured goods or services.

2.4.7 CHANGES 

There will be changes throughout the project. Some changes are a result of a risk event occurring or a project environment change, some are based on developing a deeper understanding of requirements, and others are due to customer requests or other reasons. Therefore, project teams should prepare a process for adapting plans throughout the project. This may take the form of a change control process, reprioritizing the backlog, or rebaselining the project. Projects that have a contractual element may need to follow a defined process for contract changes. 

2.4.8 METRICS 

There is a natural linkage between planning, delivering, and measuring work. That linkage is metrics. Establishing metrics includes setting the thresholds that indicate whether work performance is as expected, trending positively or negatively away from expected performance, or unacceptable. Deciding what to measure and how often is best informed by the phrase “only measure what matters.” 

Metrics associated with the product are specific to the deliverables being developed. Metrics associated with schedule and budget performance are often driven by organizational standards and are related to a baseline or an approved version of the schedule or budget against which actual results are compared. 

As part of planning, the metrics, baselines, and thresholds for performance are established, as well as any test and evaluation processes and procedures that will be used to measure performance to the specification of the project deliverable. The metrics, baselines, and tests are used as the basis to evaluate variance of actual performance as part of the Measurement Performance Domain.

2.4.9 ALIGNMENT 

Planning activities and artifacts need to remain integrated throughout the project. This means that planning for the performance in terms of scope and quality requirements aligns with delivery commitments, allocated funds, type and availability of resources, the uncertainty inherent in the project, and stakeholder needs. Project teams can require additional planning artifacts depending on the type of project. For example, logistics plans will need to integrate with material and delivery needs, testing plans will need to align with quality and delivery needs, and so forth. 

Work on one project often occurs in parallel with other projects in a program or a release. The timing of the work of a single project should align with the needs of the work on related projects and the operations work of the organization. 

Large projects may combine the planning artifacts into an integrated project management plan. For smaller projects, a detailed project management plan will be inefficient. Regardless of the timing, frequency, and degree of planning, the various aspects of the project need to remain aligned and integrated. 

2.4.10 INTERACTIONS WITH OTHER PERFORMANCE DOMAINS 

Planning occurs throughout the project and integrates with each performance domain. At the start of the project, the expected outcomes are identified and high-level plans to achieve them are developed. Depending on the selected development approach and life cycle, intensive planning may be conducted up front, and then plans may be adjusted to reflect the actual environment. Other life cycles encourage just enough planning at various points throughout the project with the expectation that plans will evolve. 

Throughout the project, planning guides the project work, delivery of outcomes, and business value. Project teams and stakeholders establish measures of progress and success, and performance is compared to plans. Uncertainty and planning interact as project teams plan for how to address uncertainty and risks. Plans may need to be revised or new plans developed to account for events or conditions that emerge. The project team members, environment, and project details influence plans for working effectively with the project team and engaging proactively with stakeholders.

2.4.11 CHECKING RESULTS 

Table 2-6 identifies the outcomes on the left and ways of checking them on the right. 

Table 2-6. Checking Outcomes—Planning Performance Domain